What is the difference between Members and Partners in an LLC?

In an LLC, the terms “member” and “partner” usually mean the same thing: an individual or entity that owns part of the company. However, within the structure of an LLC, there are different roles that clarify responsibilities and rights:

• Owner (Member): Holds a percentage of ownership in the company. Owners are not necessarily listed on state formation documents.

• Manager: May or may not hold ownership. Managers are listed on state documents and have authority to sign contracts and official documents on behalf of the company.

• Owner-Manager: Combines both roles. This person has ownership, is listed with the state, and can sign for the company.

• IRS Responsible Party: The individual designated to interact with the IRS. This person signs Form SS-4 to obtain the EIN and is responsible for tax-related matters.